Graduate Trader Advice

H

Harty

Hi,

I'm starting a graduate role as a Metals Trader soon with an Investment Bank. I've been trying to read as much material as possible before I begin so I've got a headstart.

Was hoping you guys could recommend some books or pick up on anything I have missed so far. These are the topics I have decent knowledge of but want to move to the next level ...

1. Products
- Futures
- Options
- Combinations, i.e. Vertical Call Spread, Covered Calls, Butterfly Spread, Bull Spreads, Ratio Calls, Backspread etc

2. Fundamentals
- Have looked at fundametals for precious and base metals, understand how these influence prices
- Contango, Backwardation
- Black-Scholes and Binomial Tree to price options

3. Technical Analysis
- Breakout from consolidation
- Head and Shoulders
- Oscillators like RSI, Stochastic
- Elliot Wave Analysis
- Candle Stick, Point and Figure, OHLC
- Double tops and bottoms
- Rounded tops and bottoms
- SMA, WMA, EMA, Bollinger Bands.

What else could anyone advise ? The products section I have gone into a lot of detail about, looking at people advice like 'write options in flat markets, covered options are great for fairly bullish/bearish markets', 'write straddles in normal markets' etc. I did a lot on Black-Scholes and how that works with implied volatilities and comparing them to historic to see if options are over/under valued though not having reuters or bloomberg means I can't see how a fundamental will instantly change a price so I am weak in that area. And the technical analysis work I've done is not huge, I'm aware of all of the techniques and could tell you hoe H&S works, to wait for right shoulder to be in place looking for volume peak on head and rise on right shoulder, though I haven't much experience with this.

Could any of you recommend further reading ? Would be much appreciated.


C
 
No not at all - most traders lose, not because they do not know how to trade. In fact, most traders do know how to trade. What kills them is their emotions and nothing else
 
Well my plan was to set out a strategy and continue to apply it, whatever the results for a set period of time, to try and remove all emotion out of it. Especially when I get in on a trend, rather than liquidating early on to take quick profits.

I'm planning on using a 23EMA and 30 EMA, using these to determine buy signals when closing price is above these for 2 consecutive days, then not selling until closing price drops below for 2 consecutive days. So it gets me into the trend.

Just wanted some more stuff on technical analysis mainly, or are the ones ive looked at already pretty much it ?
 
I think you need to get set up with either some backtesting software or a simulator. There is no substitute for hands on experience with the markets. You need to train yourself to do the right thing at the right time, regardless of your emotions.
 
Actually, You may be better off trying to forget everything you think you know, and let them teach you what you need to know.

(I am assuming they know...)
 
Cheers guys, you're probably right Ray !!

To be honest I don't want to turn up on day 1 looking like a dickhead not knowing anything, and if I could be better placed than the other guys who start then it's a bonus.

AAA, can you recommend any software ? I'm short of cash, so any free simulators would be great, though could fork out a little if you think it's worth it.
 
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